Prosecutors Reject Arrest Warrant for HYBE Chairman Bang Si-hyuk Amid Fraud Allegations

Prosecutors have rejected the police's request for an arrest warrant for Bang Si-hyuk, Chairman of HYBE. This decision indicates that the prosecutors believe the police's request was unfounded.

On the 24th, the Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office returned the arrest warrant application for Bang, who is accused of fraudulent trading under the Capital Markets Act, back to the police.

The prosecution stated, "We determined that there is insufficient evidence to justify the need for arrest at this stage and have requested further investigation." After the police apply for an arrest warrant, the prosecution submits it to the court, which then makes the final decision through a warrant review.

Bang is accused of misleading HYBE investors in 2019 by claiming there were no plans for an IPO, leading them to sell their shares. He allegedly gained undue profits by listing HYBE afterward, benefiting personally from a private contract with a private equity fund.

With the rejection of the arrest warrant application, the likelihood of Bang's arrest appears to be diminishing. It is unlikely that the police will be able to secure additional evidence during the supplementary investigation. Even if the prosecution eventually accepts the application and submits it to the court, the court is expected to assess the necessity of arrest more conservatively.

There are criticisms that the police's arrest warrant application was merely a show. Recently, the U.S. Embassy in South Korea sent a letter to the National Police Agency requesting the lifting of Bang's travel ban, citing BTS's world tour. Shortly after, the police applied for the arrest warrant. The emphasis on the necessity of arrest, after more than a year of investigation, has raised questions about its validity both inside and outside the legal community.

Reporter: Ko Yoon-sang kys@tenasia.co.kr